Verizon Communications Inc. (NYSE:VZ) stock fell 0.30% (As on January 25, 11:46:25 AM UTC-4, Source: Google Finance) after the company’s annual profit forecast fell short of Wall Street estimates on Tuesday, as it grapples with slowing growth in wireless customer sign-ups compared with last year and makes heavy investments in 5G technology. Verizon, whose plans are the most expensive among U.S. peers, lost subscribers last year to its fast-growing rivals AT&T Inc and T-Mobile that have been doubling down on promotional activity or have more developed 5G networks. However, thanks to promotional offers and Apple’s flagship iPhone launch during the fourth quarter, the company added 217,000 net new monthly bill paying wireless phone subscribers in the fourth quarter, higher than Factset estimates of 200,400 additions.

VZ in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.19, which is inline with the analysts’ estimates for the adjusted earnings per share of $1.19. The company had reported the adjusted revenue growth of 3.5 percent to $35.3 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $35.14 billion.

Further, Wireless service revenue increased 5.9% to $18.80 billion. Postpaid phone net additions plunged to 217,000 from 558,000 a year earlier, while retail postpaid net additions rose nearly 36% to 1.43 million, the “best single-quarter performance in seven years,” according to the company. Broadband net additions totaled 416,000, which Verizon said was the best performance in more than 10 years.

Verizon, which added 558,000 subscribers in the fourth quarter last year, expects adjusted profit between $4.55 per share and $4.85 per share in 2023. Analysts had estimated a profit of $4.97 per share, according to Refinitiv data. The company also expects capital expenditure of $18.25 billion to $19.25 billion in 2023. The wireless service revenue is expected to increase by 2.5% to 4.5%. Capital spending for the year is projected between $18.25 billion and $19.25 billion, including the final $1.75 billion of the incremental $10 billion of C-Band-related capital spending. In 2022, the company’s capital expenditures were $23.09 billion. Although the company doesn’t expect to hit its long-term guidance outlined at its 2022 Investor Day, given its exit rate from last year, it projects increasing growth in revenue and cash flow in subsequent years.